ABSTRACT
Russia should implement Product Sharing Contract (PSC) “Gross Split (GS) Scheme” as an alternative contract to optimally extract hydrocarbon in its offshore. Existing contracts don’t have necessary functionality for efficient, certain and transparent interaction with International Oil Companies (IOCs), while the collaboration is significant due to the absence of technologies, facilities and investments. Goals: Analyzing the implementation of Indonesian PSC GS; creating an adaptive model on Russian offshore. Methodology: Theoretical survey (analysis and synthesis, comparison, mental modeling). Results: Based on technical and economic characters of Russia, authors found adjustments in determining base split, incentive components and their splits as well as in taxation. This paper describes GS Scheme and discusses opportunities, problems and challenges of its application. Regarding that, Indonesian PSC GS is believed to have precise ingredients to bring about healthy, fair and sustainable business corporations in Russian offshore.
